Help me perform a first-pass investment review of this real-estate opportunity: [PROPERTY DETAILS]. My strategy is [INVESTMENT STRATEGY], my target market is [MARKET AND LOCATION], and my financial assumptions are [FINANCIAL INPUTS]. The listing, inspection, rent, tax, HOA, or other source material I have is [SOURCE MATERIAL]. My decision constraints are [CONSTRAINTS]. Produce an investor memo of 900 to 1,200 words with these sections: investment thesis; property facts; market and tenant-demand considerations; revenue assumptions; operating expenses; financing and return framework; upside opportunities; downside risks; due-diligence checklist; and a preliminary proceed, investigate further, or pass conclusion. Treat this as an underwriting aid, not investment, legal, tax, appraisal, engineering, or property-management advice. Make a clear distinction among verified source facts, my assumptions, and items requiring confirmation. If cash flow is discussed, show the formula and inputs for effective gross income, operating expenses, NOI, debt service, cash flow before tax, cap rate, debt-service coverage ratio, and cash-on-cash return. State that cap rate should use stabilized NOI and clarify whether vacancy, management, repairs, utilities, reserves, HOA, insurance, and property taxes are included.
Assess property selling points accurately: identify which attributes are documented, which are reasonable inferences, and which need evidence. Do not use language that could violate fair-housing rules or make unverified claims about schools, safety, appreciation, neighborhood character, zoning, permits, short-term-rental legality, rents, or future development. Flag title, flood, environmental, condition, lease, insurance, and financing issues that a local professional should review. Ask up to 3 clarifying questions only if a required input is missing. Before answering, check that all calculations reconcile to the stated inputs and that the conclusion does not rely on an unsupported rent, expense, or resale assumption.
Fill in
| Placeholder | What to enter | Example |
|---|---|---|
| [PROPERTY DETAILS] | Enter the property type, price, size, condition, unit count, and notable listing details. | Duplex listed at $425,000 in fair condition; each unit is 2 bed/1 bath; seller says one unit is vacant and one rents for $1,650 monthly. |
| [INVESTMENT STRATEGY] | Enter your intended strategy, such as long-term rental, house hack, value-add, or owner occupancy. | Long-term rental with light renovations and a five-year hold |
| [MARKET AND LOCATION] | Enter the city, neighborhood or submarket, and relevant location context. | Tacoma, Washington, near a hospital and bus corridor |
| [FINANCIAL INPUTS] | Enter purchase price, down payment, financing terms, expected rent, and known expenses or ranges. | 25% down, 6.75% 30-year fixed loan, $3,600 estimated monthly gross rent after renovation, $7,100 annual taxes, $1,850 annual insurance. |
| [SOURCE MATERIAL] | Enter the documents or notes available, such as a listing, rent roll, inspection summary, or tax record. | MLS listing, county tax record, seller rent roll, and a preliminary inspection note showing an older roof. |
| [CONSTRAINTS] | Enter your budget, time horizon, liquidity needs, risk limits, and deal-breakers. | Maximum $35,000 renovation budget, must break even after reserves, no major foundation work. |
How to use
- Paste property facts exactly as you have them, including uncertainty in seller statements and estimated costs.
- Check the assumptions table against the listing, lender worksheet, rent comps, and local expense quotes before using any return figure.
- Use the due-diligence checklist to ask the agent, seller, inspector, lender, and local professionals for missing evidence.
- Follow up with: “Build a conservative, base, and downside case using these three rent and repair assumptions: [ASSUMPTIONS].”
Variations
Rental underwriting
Use this to compare a rental property against your minimum return and risk thresholds.
Underwrite this potential rental: [PROPERTY FACTS]. Use these inputs: [PURCHASE AND FINANCING], [RENT ASSUMPTIONS], and [EXPENSE ASSUMPTIONS]. Create a monthly and annual table for gross potential rent, vacancy, effective gross income, itemized operating expenses, NOI, debt service, cash flow before tax, DSCR, cap rate, and cash-on-cash return. Run conservative, base, and downside cases for [VARIABLES]. List every assumption that needs local verification. Do not estimate missing rents or repairs as facts; show ranges or leave them unresolved.
Offer analysis
Use this before choosing an offer price and contingency structure.
Help me analyze an offer on [PROPERTY]. The asking price and relevant terms are [LISTING TERMS]. My financing, repair, and holding assumptions are [MY INPUTS]. Produce a decision table with three offer-price scenarios, estimated cash needed at closing, first-year cash flow, key contingencies, and the evidence needed before removing each contingency. Include inspection, financing, appraisal, title, insurance, occupancy, and permit considerations where relevant. Do not provide legal advice or tell me what contract language to use; identify questions for my agent or attorney.
Listing fact check
Use this to turn listing language into a compliant, evidence-based investment summary.
Audit this property listing and supporting material: [LISTING TEXT AND DOCUMENTS]. Make a table with each material claim, its category, supporting evidence, confidence level, and safe investor-facing wording. Categories should include physical condition, income, location, zoning, amenities, operating costs, and future upside. Flag unverified claims about rent potential, neighborhood trends, schools, safety, permits, short-term rentals, and appreciation. Then draft a 150-word factual investment summary using only supported claims and clearly labeled assumptions. Do not use fair-housing-sensitive language.Tips
- Underwrite vacancy, maintenance, capital reserves, management, and turnover separately; a single miscellaneous-expense line can hide the reasons a deal misses cash flow.
- Use actual insurance quotes and property taxes for the parcel where possible, because both can differ sharply from listing estimates.
- Do not treat current rent as market rent or market rent as collectable rent until you review leases, unit condition, concessions, and comparable data.
- A good deal memo names the evidence that could change the decision, not just the evidence supporting the purchase.
FAQ
Can AI tell me if a rental property is a good investment?
It can help structure analysis and identify questions, but it cannot verify local rent demand, condition, title, financing, or your personal risk tolerance. Use local professionals for those decisions.
What is the most common underwriting mistake?
Using optimistic rent with incomplete expenses is common. Include vacancy, repairs, capital reserves, management, taxes, insurance, and financing costs on the same basis.
Can I use AI to write a property listing?
Yes, but only from documented facts. Avoid unverified location claims and language that could violate fair-housing laws.